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Following an investigation by a government watchdog lasting two months and costing thousands of pounds,  the complaint by local activists was rejected.

The Local Government Ombudsman, who asked for the city's council to provide evidence of how it supported the gay community, said it was satisfied the pink pound was being catered for.

As part of the investigation, the council had to prove its inclusiveness by giving details of "touring plays and musicals, for example, which would be of interest to the Lesbian Gay Bisexual and Transgender community".

It also had to show that it had "put forward suggestions for small events that it might help fund, as well as proposals for other events such as exhibitions".

Rob Davies, spokesman for the council, said: "We feel we do a great deal for the gay community in Canterbury and we have always tried to support various gay events and promotions.

"But at the same time it is not the duty of any council to set up a gay bar – that's not what councils do."